Change Auto & Umbrella Insurance after 52 years?

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Gill
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Change Auto & Umbrella Insurance after 52 years?

Post by Gill »

It may be hard to believe, but I've had my auto and umbrella insurance with Amica since 1965 - 52 years. I had also had my homeowner's coverage with them most of those years until we moved within Florida, and they no longer were insuring Florida houses and refused to cover the new place in spite of my longevity with them.

Both my auto and umbrella coverage have had a 20+% premium increase recently, and I've obtained quotes from Geico with an annual savings over Amica of about $700.

My question is simply, would I be foolish to give up all that longevity with Amica for a $700 annual savings or is that long history of essentially no value in my future dealings with the company?
Gill
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Goal33
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by Goal33 »

Your past relationship is meaningless in terms of any benefit to you. You shouldn't be surprised when they don't even try to retain you when you cancel your existing policy.
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2pedals
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by 2pedals »

Gill wrote:My question is simply, would I be foolish to give up all that longevity with Amica for a $700 annual savings or is that long history of essentially no value in my future dealings with the company?
Gill
I would use as leverage to get a lower rate with Amica, if you still want to use them.
2comma
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by 2comma »

In this day and age I've read it pays to shop your insurance rate every year or two. I think most insurance companies slowly increase their rates hoping you won't check to see if some other company offers a better rate. I see no benefit to being a long time customer.
If I am stupid I will pay.
RudyS
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by RudyS »

I have been wondering too. Have been with AAA auto for maybe 30 years. Rates do seem high but I have not shopped around. My rates did not increase after my only at-fault accident. Just too lazy to go shopping but I am also reluctant to end this relationship. Seems I need a swift kick to at least get me to go shopping.
edit - at least I'll let the (independent) agent who handles my homeowners policy get me a quote.
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JonnyDVM
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by JonnyDVM »

2pedals wrote:
Gill wrote:My question is simply, would I be foolish to give up all that longevity with Amica for a $700 annual savings or is that long history of essentially no value in my future dealings with the company?
Gill
I would use as leverage to get a lower rate with Amica, if you still want to use them.
Absolutely. You've been loyal to them. Let's see how much the care to reciprocate. Not to be a pessimist but I'm guessing they won't care much about your history. I will say though, 50+ years with the same insurer! That's incredible. They should give you $800 off and use you in a newsletter.
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Spirit Rider
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by Spirit Rider »

I have never known or ever heard of any insurance company lowering their rates to get you to stay. Part of this is may be due to insurance regulations in many states, but even in the least regulated states, I have never heard it done.
fsrph
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by fsrph »

I switched to Geico after being with State Farm for 35 years. SF raised rates slowly but surely till they were not competitive with other companies. I believe SF thought I'd never leave after being a customer for so long. No complaints with Geico so far. If your coverages are equal with the new Geico policy I'd change in a heartbeat.

I re-read your post. It seems like you didn't ask your current provider to match the Geico quote. Ask them. I'm thinking they won't match it, just like SF wouldn't match my Geico quote. If they don't match then I'd switch to Geico.

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Last edited by fsrph on Sun Jun 18, 2017 10:02 pm, edited 1 time in total.
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SueG5123
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by SueG5123 »

Been with USAA for over 35 years, but planning to find a new insurer this year. They have no loyalty to me.
inverter
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by inverter »

In my opinion, go with the best rate.

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gwrvmd
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by gwrvmd »

SueG5123....There is a major, not well publicized discount that comes at 40+ years at USAA. It is worth about 30% of my insurance cost. Don't leave USAA until you investigate that......Gordon
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Topic Author
Gill
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by Gill »

Thanks all for the responses. The consensus seems to be that I should say goodbye to Amica. Should have mentioned, the only claim they ever paid was about $250 when my wife slipped off an icy road and damaged someone's lawn many years ago. I have used Geico in the past for motorcycle insurance and had a good experience. Looks like I'll make the switch today. Many thanks.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
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dodecahedron
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by dodecahedron »

Spirit Rider wrote:I have never known or ever heard of any insurance company lowering their rates to get you to stay. Part of this is may be due to insurance regulations in many states, but even in the least regulated states, I have never heard it done.
When my mother (at age 70-something) called her auto insurer to complain about a rate increase, the agent suggested that she could get a big discount on her premium if she enrolled as a part-time student (even just taking one course in any subject of her choice) at the local community college. It had been over 50 years since she was in formal education, but what the heck, senior citizens can take free college classes, so she did. It was an interesting experience.
MarvinK
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by MarvinK »

gwrvmd wrote:SueG5123....There is a major, not well publicized discount that comes at 40+ years at USAA. It is worth about 30% of my insurance cost. Don't leave USAA until you investigate that......Gordon

Thanks for posting. I switched to USAA a few years ago, and their rates made a huge difference. (It'll take me a while to get to that milestone, but I'll get there)
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SmileyFace
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by SmileyFace »

You could ask them to meet the new policy price quote before dumping them (but Amica likely wouldn't - they are one of the most expensive insurance carriers out there from the quotes/comparison I did last year - they will likely try to sell you on how much better their claim process is - but if you rarely/never file claims it doesn't matter). Think of what you can do with that $700. Go with a more reasonably priced product.
The only thing loyalty gets you with insurance carriers is higher rates - its best to shop around every few years or so.
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Edie
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by Edie »

DaftInvestor wrote:You could ask them to meet the new policy price quote before dumping them (but Amica likely wouldn't - they are one of the most expensive insurance carriers out there from the quotes/comparison I did last year - they will likely try to sell you on how much better their claim process is - but if you rarely/never file claims it doesn't matter). Think of what you can do with that $700. Go with a more reasonably priced product.
The only thing loyalty gets you with insurance carriers is higher rates - its best to shop around every few years or so.
We saved over $1500 when we switched to Amica (we have 2 teenage drivers) and they dropped our rates the following year another $600. The only way to know the best rate for your individual circumstances (zip, ages, all the other items that go into insurance quotes) is to get new quotes. For us, Progressive was the absolute worst, while others swear by them for their rates. I wholeheartedly concur with shopping around.
sco
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by sco »

They give discounts to new customers, just like everyone. It is money in your pocket if you switch, they likely won't offer you anything when you cancel.
mrc
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by mrc »

2comma wrote:In this day and age I've read it pays to shop your insurance rate every year or two. I think most insurance companies slowly increase their rates hoping you won't check to see if some other company offers a better rate. I see no benefit to being a long time customer.
There have been many suggestions to periodically shop around for auto/home/umbrella insurance, mostly to protect one against rate creep. Like the cable/phone companies, customer loyalty doesn't seem to be rewarded by insurance companies. If anything, there seems to be a longevity penalty. It is tricky to price compare for the same coverage, and sometimes a lower rate comes with less coverage that's not always apparent.So, my question: What is the best way to do this? Progressive.com? Call a local "independent agent?"
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DL1111
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by DL1111 »

Part time reader, first time poster so be gentle.
Background Pricing/Marketing for publicly traded P&C carrier.

First off, unfortunately the days of building good will with your insurance carrier for longevity are over. As far as homeowner's goes (depending on your state of course) it might spare you from getting dropped if you have to file a claim, but that's about all it will get you. Insurance companies survive on two things, rate creep and investments. The goal in most major insurers is to price for a 2-3% profit overall. A secret is that insurance companies lose money on new business almost without exception.
No offense intended but you are just a number and the older you get, the less attractive that number looks. Every company wants that 30-55 year old who drives less than 10 miles to work. At my last company once you hit 55 years driving experience (because you can't discriminate on age) they would make getting a policy so difficult that people just gave up trying.
There are so many factors that go into an insurance rate now that I couldn't list them all. Zip codes, driving history, age, and New customer discounts have the most impact though it seems. Big Data really is the driving force in the insurance industry these days.

Everyone should shop around every 3 years. At my old company that's the point when the new customer discount was 100% phased out. Don't feel bad for Joe agent, and don't blister him because he doesn't set the rates and is likely at the mercy of an underwriter. I would speak with an independent agent who has access to multiple companies and let him/her price you out. Before you go in there, give them the price you think is fair, or give them the GEICO quote and see what they can do. Just remember though, you're paying a premium for service and availability. I've seen Geico mislead Innocent/ignorant customers too many times to recommend them, but if you're comfortable with your knowledge of coverage limits and availability then go for it.

I hope this helps.
sco
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by sco »

I just did this with my auto and home. It was maybe 30 minutes work.

I downloaded my existing policies and typed up the specifics in a word document. Then I visited 3 of the major online ins companies, I pasted everything in and ensured that all coverages matched what I wanted. There was $1000 every 6 months difference between the highest and lowest, for the exact same auto coverage.

Housing coverage there were slight differences, as one company wanted to do 1% and the other 3k deductable, but it was still easy enough to make a decision after i Had all the details input..
Alan S.
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by Alan S. »

Back in the day, there was at least some degree of loyalty exhibited by insurance carriers when a borderline situation came up. If you had been a loyal customer for many years, the company would make an "accommodation" in your favor. This would not be a rate reduction, but more likely an exception to overlook a ticket or the condition of your roof for an HO policy.

Those days are pretty much gone unless perhaps you have a very large commercial account with the carrier. Not only that, but there has been anecdotal indications that long standing policyholders are now being viewed as suckers susceptible to rate increases because of their loyalty. That company will then be more flexible with new business, so the new guy gets a better deal than the loyal policyholder. Works so well with the cable TV industry, some insurers have taken a lesson from them. Obviously, some insurers may be slower to adopt this approach than others.

Therefore, I would not hesitate to change companies at your convenience. But I would not return the certificate and gift card they sent you when you reached 50 years with them. What, they didn't send anything? :wink:
afan
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Re: Change Auto & Umbrella Insurance after 52 years?

Post by afan »

Amica should be giving you discounts to recognize your long relationship.

The company has a great reputation for service, but does not often turn up as the lowest price. You should shop your insurance every few years and see what rates you can get. Do not just look at one alternative company. Shop online for those that offer this and go on your own or through a broker to check out some others.

We are long time customers with one company. Every few years I shop auto/home/umbrella. So far the discounts our company claims to give us do result in the price being considerably better than anyone else has offered. If that ceases to be the case we would decide whether the difference was worth jumping ship.

The customer service of our company was great in our old state, lousy now where everything is based out of a single call center. They have some people who know what they are doing, but many who seem to have been flipping burgers the day before you speak to them. On the rare occasions that we have had actual problems the company has been fine and its huge size means that it has agents and resources everywhere.

It has proven handy to deal with a giant firm. Amica is not a giant firm, but it does have that strong reputation. Once you shop, go back to them and see whether they can beat the prices you get elsewhere. If not, then you will be in a position to decide whether the savings are worth changing companies. Good service is worth something, just not sure how much.
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